WeWork India, the flexible workspace provider, has successfully raised Rs 500 crore (approximately $57.8 million) through a rights issue. The funds raised will primarily be used to repay debt, putting the company on a path to becoming debt-free and lowering its cost of capital.

Currently operating in eight cities across India, WeWork India manages more than 1 lakh desks, with strong relationships with landlords, International Property Consultants (IPCs), and members. Since its inception in India in 2016, the company has expanded to 63 operational centres in key cities like Chennai, New Delhi, Gurugram, Noida, Mumbai, Bengaluru, Pune, and Hyderabad.

In terms of financial growth, WeWork India saw its revenue from operations increase by 26.7%, reaching Rs 1,665 crore in the fiscal year ending March 2024, compared to Rs 1,315 crore in the previous year, according to the company’s consolidated financial statements filed with the Registrar of Companies.

While the global parent company, WeWork, faced severe challenges, including filing for Chapter 11 bankruptcy in the US in November 2023, the Indian arm has managed to stay resilient and is now focusing on its future. WeWork India has set its sights on an initial public offering (IPO) with an anticipated valuation of $2-2.5 billion.

In the broader co-working space industry, competitors like Awfis, which became the first Indian co-working startup to list on the stock exchange, and Smartworks, which has secured SEBI approval for its IPO, are also pursuing similar growth strategies. Other players like Simpliwork, Table Space, DevX, and Indiqube are also working towards launching their IPOs.

Despite facing setbacks at the global level, WeWork India’s positive revenue growth and plans for an IPO shows its determination to carve out a stronger presence in the Indian co-working market.